Ethos shares fall further after listing at discount
Premium- Ethos IPO got fully subscribed on the last day of its offer
Shares of Ethos made a tepid stock market debut on Monday with the stock listing at ₹825 on the NSE, a discount of more than 6% from its IPO issue price of ₹878 per share. On the BSE, Ethos shares started trading at ₹830 apiece, and fell further to ₹807 within minutes post listing.
The initial public offer (IPO) of luxury and premium watch retail player Ethos got fully subscribed on the last day of subscription. The portion for non-institutional investors received 1.48 times subscription, while the category for Qualified Institutional Buyers (QIBs) got subscribed 1.06 times and Retail Individual Investors (RIIs) 84%.
The public issue had a fresh issue of equity shares aggregating to ₹375 crore and an offer for sale of up to 11,08,037 equity shares. Price range for the offer was at ₹836-878 per share.
Proceeds from the fresh issuance will be utilised for repayment of debt, funding working capital requirements, opening new stores and general corporate purposes.
Ethos has the largest portfolio of premium and luxury watches in India and retails 50 premium and luxury watch brands like Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, Carl F Bucherer, Tissot, Raymond Weil, Louis Moinet and Balmain.
Under the brand name Ethos, it opened its first luxury retail watch store in January 2003 at Chandigarh. It has 50 physical retail stores in 17 cities in India in a multi- store format, and offers an omni-channel experience to its customers through its website and social media platforms. The company's revenue from operations stood at ₹386.5 crore for fiscal 2021, while its net profit was ₹5.7 crore in the same period.
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“Ethos is valued at ~95x P/E on annualised FY22E basis. Sustained enhancement in profitable growth and improvement in return ratios would be key monitorables, going ahead. We await consistency in improvement in profit metrics that the company has exhibited in recent quarters," ICICI Securities had said in the IPO note.